Edelweiss Large & Mid Fund Direct Plan Growth Option INF843K01AL0

Edelweiss Large& Mid Cap Fund earns an Above Average Process Pillar rating.

The largest contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 77%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent firm's superior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, also supports the process. However, the process is limited by the parent firm's five-year retention rate of 57%, which raises concerns about long-term strategic consistency..

This strategy has more exposure to the Growth factor than the Large & Mid-Cap Morningstar Category average. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has continually had exposure to high-momentum stocks compared with Morningstar Category peers in the last few years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. The managers have also tended to underweight yield compared with peers during recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. Such exposure tends to pay off when markets are hot and to be costly when they are not. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in technology and industrials relative to the category average by 2.9 and 2.6 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and consumer defensive, with consumer cyclical underweighting the average portfolio by 4.0 percentage points of assets and consumer defensive similar to the average. The strategy owns 94 securities and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 26.0% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 31.5% average.